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| Murugappa group lines up Rs 4,500 cr over 3 years |
| BS Reporter / Chennai Sep 10, 2010, 00:59 IST |
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The Chennai-based $3.03 billion Murugappa group is planning to invest around Rs 4,500 crore over the next three years to achieve its business target of $7.7 billion by 2013-14. Operating in seven business verticals, the group has said it is looking at 24 per cent CAGR in each of its verticals, and may merge Sadashiva Sugar with EID Parry in future.
Speaking to Business Standard after unveiling group’s new logo in Chennai on Wednesday, A Vellayan, executive chairman, Murugappa group, said the company would invest around Rs 1,500 crore a year over the next three years. “This would help to reach our business target of $7.7 billion turnover by 2013-14 from the current $3.03 billion. Each vertical would grow by 24 percent CAGR,” he said.
Earlier addressing the press conference, he said the group was present in seven verticals and it would look to diversify into areas related to the group's current operations. “We might look at farm equipment, drip irrigation and other areas,” he said. The proposed investment will be both for organic and inorganic growth, with around 60 per cent for the former, he added.
The company would invest around Rs 10 crore in brand-building during the current fiscal. “This would help to create our brand in overseas markets and our foray into new areas”. The group currently operates in Russia, China, South Africa, France, Tunisia and US.
According to M M Murugappan, vice chairman, Murugappa group, integration of overseas operations – VAW in Russia and CUMI in China – was happening smoothly, and that the group was investing around $5 million in Russia to upgrade operations.
Vellayan said EID Parry’s acquisition of Sadashiva Sugar from GMR Industries in Karnataka was also progressing well and that in future it may be merged with EID Parry. On Coromandel International Ltd, Vellayan said the company was planning to set up an ammonia and urea plant abroad possibly in Russia or the Middle East. “Location depends on the gas price,” he said.
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